Apple is reducing retail prices of its iPhones in China by as much as $500 (or $70) in response to intensifying competition in the largest smartphone market in the world.
The pricing for select iPhones was reduced by 5%, as announced on Monday on the Chinese website of the American technology behemoth. The limited-time promotion, which is being marketed as a Lunar New Year celebration, will run from January 18 to January 21 in anticipation of the mid-February holiday.
In China, the latest iPhone 15 series of devices has performed considerably worse in terms of sales than its predecessors.
Domestic competitors like Xiaomi and Huawei Technologies offer competitive models, and some companies and government agencies, according to sources, have restricted the use of Apple devices by employees for security reasons, mirroring U.S. government restrictions on Chinese applications.
A client note from Jefferies analysts stated that Chinese iPhone sales decreased by 30% in the first week of 2024 compared to the same period the previous year, following a 3% decline for the entire year of 2023. This year, analysts anticipate the competitive landscape to become more intense.
